In a move to compete for business from wireless carriers, Cisco Systems has reached an agreement to acquire Starent Networks for $2.9 billion. Starent supplies IP-based mobile infrastructure solutions.
With the Starent acquisition, Cisco is preparing for mobile Internet growth. The company noted the mobile Internet is at an inflection point as IP-enabled smartphones and other mobile devices see rapid market adoption. Service providers have been actively investing in this market to accommodate a spike in global mobile data traffic, which the Cisco Visual Networking Index expects to more than double every year through 2013.
“We are very pleased that Starent Networks will be joining the Cisco team, and we believe their products and engineering talent will greatly benefit our service-provider customers as they build out their mobile Internet offerings,” said Cisco Chairman and CEO John Chambers.
Playing in the Mobile Space
Starent solutions help service providers scale their mobile infrastructure. The company provides multimedia intelligence, core network functions, and services to manage access from any 2.5G, 3G, and 4G network to a mobile operator’s packet core network. Starent’s access-independent technology is deployed in CDMA2000 (1X, EVDO), UMTS/HSPA and WiMAX networks.
“Cisco and Starent Networks share a common vision and bring complementary technologies designed to accelerate the transition to the mobile Internet, where the network is the platform for service providers to launch, deliver and monetize the next generation of mobile multimedia applications and services,” said Pankaj Patel, senior vice president and general manager of Cisco’s service provider business.
Integration Plans
Starent was founded in 2000 and had an initial public offering in 2007. The company has about 1,000 employees worldwide. For the year ended Dec. 31, 2008, Starent reported revenue of $254.1 million, up 74 percent from 2007.
Cisco’s acquisition is expected to close during the first half of 2010. Until then, the companies will continue to…